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Router as AP vs a dedicated AP

I need to upgrade my current 54g Wireless Access Point, pending my FTTC installation. I want to stick with separate router and access point, because the location of my wired router is not a good/convenient place for my wireless access point.

Having researched prices online, it seems that I get get a wireless router for significantly less than I can get a dedicated Wireless Access Point. For example, a Netgear WN604 wireless-n access point is about £50, whilst I can get an equivalent wireless router (WNR1000) for £30.

In general, a wireless "Cable/DSL Router" which doesn't incorporate a modem, is less expensive than a stand-alone Wireless Access Point. You don't even need to disable its DHCP server, just connect its ethernet WAN port to one of your main router's LAN ports, run it as a sub-router and connect all of your devices to it. Just make sure that both routers operate in a different subnet (IP address range) to avoid a conflict.

If you need to connect to both routers, and have network access between devices on the separate routers, then you would have to disable the second router's DHCP server and use it as a basic Network Switch & Wireless Access Point so that all devices are in the same subnet.

"presumably it's just an issue of manufacturing scales (i.e. fewer people buy APs, so fewer are produced, at greater cost)"

I would imagine so. I've been using a dual router setup with DHCP disabled on the second router etc. for a long time and not had an issue with it. I can't see any reason to pay more for an Access Point.

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